Bankers’ battle threat to economic stability: Fahmida
Staff Reporter :
Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), raised a red flag on Saturday regarding the Bangladeshi banking sector’s ability to support the economy.
Speaking as the chief guest at a debate competition organized by Debate for Democracy (DFD), Dr. Khatun pinpointed a lack of transparency and accountability as key factors weakening the sector.
“The banking sector has lost its capacity to ensure macroeconomic stability,” Dr. Khatun cautioned. She attributed this decline to deficiencies in good governance, highlighting the central bank’s inability to guarantee the safety of depositor funds, consequently sparking public concern.
The CPD leader further noted the “disorder” plaguing the banking sector, citing instances where the International Monetary Fund (IMF) had to recommend bank mergers.
To address these issues, Dr. Khatun recommended that the Bangladesh Bank (BB) prioritize transparency by ensuring a free flow of information to journalists. This, she argued, would empower journalists to act as watchdogs and hold the financial sector accountable.
Meanwhile, DFD Chairman Hasan Ahmed Chowdhury Kiron acknowledged the media’s role in exposing irregularities within the financial sector. He emphasized that journalists have a professional responsibility to report on such issues, including the Bangladesh Bank reserve heist, without fear of reprisal.
In the wake of concerns regarding the Bangladeshi banking sector, Debate for Democracy (DFD) has proposed a series of recommendations aimed at restoring public trust and maintaining order.
DFD emphasizes the need for legal reform to facilitate bank mergers while safeguarding consumer confidence. Additionally, they advocate for the establishment of special tribunals to prosecute financial crimes and recover embezzled funds from banks.
To ensure greater accountability and good governance, DFD proposes the formation of an independent banking commission. Furthermore, they call for increased transparency by urging the publication of a list of loan defaulters and money launderers presented to parliament.
Finally, DFD highlights the importance of holding those responsible for the Bangladesh Bank reserve heist accountable. They urge authorities to identify the culprits and keep the media informed about progress made in recovering the stolen funds.